How Finland Solved Homelessness: Actionable Insights for Global Application?

Finland's success in reducing homelessness is a remarkable example of effective policy and strategy that other countries, including the United States, can learn from. Central to Finland's approach is the innovative "Housing First" model, which focuses not only on providing temporary relief but on creating permanent solutions. Here’s an in-depth exploration of Finland’s strategy, offering practical insights for other nations facing homelessness challenges.

Housing First Model: Prioritizing Stability

The Housing First model in Finland is transformative, offering immediate, unconditional access to permanent housing. This approach recognizes stable housing as a fundamental right and a critical first step in addressing related issues. A major factor in the model’s success is the provision of affordable housing, heavily supported by government investment in construction and renovation to meet demand. Of Finland's 3.2 million apartments, approximately 34% are rented, with a significant portion built using state subsidies, highlighting the government's dedication to affordable housing.

Countries looking to emulate this success should consider allocating resources for building and renovating affordable housing and leveraging public-private partnerships to expand housing availability.

Comprehensive Support Services

Housing alone does not address all the needs of the homeless population. Finland combines housing initiatives with vital support services tailored to individual needs, such as mental health care, addiction treatment, job training, and social integration programs. Research indicates that access to these services can significantly improve outcomes for those experiencing homelessness.

Establishing a network of support services alongside housing initiatives is crucial. This network should include comprehensive mental health services, addiction treatment, and employment assistance programs.

Legal and Cultural Shifts

In Finland, there is a legal and cultural framework that supports the overall strategy. Public intoxication and loitering are discouraged, and individuals with addictions or mental health issues are directed into mandatory treatment plans that include housing. This cultural commitment to social welfare and collective responsibility is a key component of Finland's success.

Countries looking to replicate this success should consider enacting policies that discourage behaviors like public intoxication while providing pathways to treatment and housing. Fostering a cultural shift that emphasizes social welfare and collective responsibility is also vital.

Role of MuniFin

A unique element of Finland’s housing success is MuniFin, the sole credit institution in Finland specializing in financing the municipal sector and non-profit housing production. Housing loans made up 48% of MuniFin’s total long-term customer financing portfolio at the end of 2021, demonstrating significant financial support for housing development and ensuring sustainable, long-term solutions.

Role of NGOs and Other Aligned Organizations

Finland’s strategy involves effective coordination among municipalities, regions, and non-governmental organizations (NGOs). This collaborative approach integrates the efforts of local governments, non-profits, and community organizations, playing a crucial role in addressing homelessness comprehensively.

While governments provide funding for housing, community organizations and NGOs bring their on-the-ground expertise and targeted services to address diverse needs and reach underserved populations. A similar idea of coordination can be seen in the work of 100 Meals a Week, an organization founded by Karina and Zeeshan Hayat in 2006. The organization, which has expanded from Vancouver to various U.S. communities, collaborates with local groups to deliver essential items like meals, clothing, and hygiene products. Their success highlights the importance of integrated efforts in tackling complex social issues.

Preventive Measures

Finland emphasizes prevention and early intervention to stop homelessness before it starts. This includes financial assistance, mediation services, and support for individuals at risk of becoming homeless.

To replicate this, nations should implement programs focused on early intervention, such as rental assistance, mediation services for tenants and landlords, and support for at-risk individuals.

Work Programs and Safety Nets

Finland’s welfare system ensures that individuals can work without losing essential benefits, avoiding the so-called "benefit cliffs." There is also a strong emphasis on guaranteed work programs that provide employment opportunities for those unable to find work in the private sector.

Developing similar guaranteed work programs and ensuring that welfare systems are structured to support individuals working additional hours without losing benefits are important steps in addressing homelessness.

Conclusion

Finland’s comprehensive and compassionate approach to homelessness provides valuable lessons for countries worldwide. By prioritizing immediate housing, integrating support services, investing in affordable housing, enacting policy reforms, fostering regional coordination, emphasizing prevention, and ensuring robust work programs and safety nets, nations can make significant progress in reducing homelessness. Finland’s model demonstrates that with a committed, multi-faceted strategy, homelessness can be effectively addressed.